Download presentation
Presentation is loading. Please wait.
1
The New Product Development Process
Class 6 Design and Branding
2
Development: Product Design
3
Don Norman: “Emotional Design” – why we love or hate everyday things
Phillip Starkes juicer
4
Consumer Response to Product Form (Adapted from Bloch 1995)
Psychological Responses to Product Form Product Form Behavioral Responses Cognitive Evaluations Categorization Beliefs Without emotions, your decision making abiity would be impaired. Emotion is always passing judgments, presenting you with immediate information about the world: here is potential danger, there is potential comfort; this is nice, that is bad. Aesthetically pleasing objects enable you to work better. Affect comes first; consciousness comes late. Both affect and cognition are information-processing systems but they have different functions. The affective system makes judgements and quickly helps you dtermine which things in the environment are good or bad. Cognitive system interprets and makes sense of the world. Emotion is the conscious experience of afffect, complete with attribution of its cause and identification of its object. The queasy uneasy feeling you might experience without knowing why is affect; anger at harry the used car salesman who overcharged you is anger.Affect comes first! You never have a second chance to make a first impression.... (Don Norman’s book)pp10-12 Alice Isens study: attractive things make people feel good, which in turns makes them think more creatively. How does that make something easier to use? Simple, by making it easier for people to find solutions to the problems they encounter. Emotional Evaluations Aesthetics
5
What Is Design? Has been defined as “the synthesis of technology and human needs into manufacturable products.” In practice, design can mean many things, ranging from styling to ergonomics to setting final product specifications. Design has been successfully used in a variety of ways to help achieve new product objectives. One thing it is not: “prettying up” a product that is about to manufactured!
6
Contributions of Design to the New Products Process
Speed to market... Knowing that customer needs are included in the front end so that concept screening and testing should go well Ease of manufacture – more of an engineering role... Minimize the number of working parts and connectors required (Swatch watches... Have about a third of the movign parts of a traditional swiss watch) Differentiation – sending a signal of originality and innovativeness and distinctivenss Design to meet customer needs... Universal design – term sometimes used to mean the design of products to be usable by anyone regardless of age or ability. Phones with extra large buttons , auto garage door openers , automatic retail store doors Support corporate identity – visual equity (bernd schmitt)
7
Range of Leading Design Applications
Purpose of Design Aesthetics Ergonomics Function Manufacturability Servicing Disassembly Item Being Designed Goods Services Architecture Graphic arts Offices Packages Aesthetics – the philosophy of art the branch of philosophy dealing with beauty and taste (emphasizing the evaluative criteria that are applied to art); "traditional aesthetics assumed the existence of universal and timeless criteria of artistic value" Ergonomics"The systematic application of knowledge about the pyschological, physical, and social attributes of human beings in the design and use of all things which affect a person's working conditions: equipment and machinery, the work environment and layout, the job itself, training and the organization of work:"
8
Assessment Factors for an Industrial Design
9
What is Product Form? Objective Physical Properties of a Product Form
Structure Texture Color
10
Psychological Responses to Consumer Products
Context Category Membership Functionality What happens in the absence of context? Design communicates, but does it do so effectively? How does the design and its context influence: Consumers’ reactions to the new products Consumers’ communication strategies
11
What Does the Design Tell You?
12
What Does the Design Tell You?
16
Perceived Product Newness
Category Provided? No Yes Product Demonstration Provided? 16.3 19.0 18.1 20.2 Range of Scores: 4 to 28
17
Why does perceived newness matter?
Correlation between perceived newness and product evaluation = .43 (p < .0001)
18
How Do Consumers Communicate Design?
Categorization “Marketers must proactively consider how they want consumers to categorize a product rather than leaving it to chance.” - Bloch 1995 Analogies Tendency to describe the novel in terms of the known “Looks like” vs. “Works like”
19
Alternative Interpretations
Foot Massager Heater Bathroom Scale Lawnmower Toy Slide Projector Record Machine CD Player Sony Boom Box Face Massager Hot Pot Computer Peripheral Grill MP3 Player Optometrist’s Tool Video Recorder
20
Alternative Interpretations
Razor Medical Device Massage Tool Computer Mouse Tape Recorder Facial Scrubber Mini-massager Lip Shaver Medical Device Foot Buffer Blood Pressure Tester Arm Pit Odor Remover Portable Heater Mini Oven Humidifier
21
Analogies Used Frisbee UFO Salad Bowl Decoy in a Science Fiction Movie
Yo-Yo Pizza Pen Can Opener Pencil Microphone Video Recorder James Bond device Chocolate Bar Flash Light Fold-Up Fan TV Remote Control
22
Analogies Used Hockey Stick Scanner Fish Tank Scanner
23
Branding
24
The Value of a Strong Brand
“Brand equity has just as much effect on stock price as do earnings.” —David Aaker Professor of Marketing, Emeritus University of California, Berkeley
25
Build the Brand “Now more than ever, companies see the power of a strong brand. At a time when battered investors, customers and employees are questioning whom they can trust, the ability of a familiar brand to deliver proven value flows straight to the bottom line.” “ … a strong brand, even in bad times, can allow companies to command premium prices.” “ … a strong brand also can open the door when growth depends on breaking into new markets.” —“The Best Global Brands,” Business Week, August 5, 2002
26
What is a Brand? A brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” Source: American Marketing Association A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated; a successful brand is timeless. Source: Stephen King, WPP Group, London A brand is something that resides in the minds of consumer.
27
What is a Brand? Identifies product/service of seller and
Symbol Term Identifies product/service of seller and differentiates from competitors Design Name Combination Sign Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity
28
Importance of a Brand The marketing battle will be a battle of brands, a competition for brand dominance. Businesses and investors will recognize brands as the company’s most valuable assets. This is a critical concept. It is a vision about how to develop, strengthen, defend, and manage a business… It will be more important to own markets than to own factories. The only way to own markets is to own market-dominant brands. Source: Larry Light, Journal of Advertising Research
29
Benefits of Brands Consumers Identification of the source of product
Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with maker of product Symbolic device Signal of quality
30
Benefits of Brands (cont.)
Manufacturers Means of identification to simplify handling or tracing Means of legally protecting unique features Signal of quality level to satisfied customers Means of endowing products with unique associations Source of competitive advantage Source of financial returns
31
A Brand is More Than a Product
Organizational associations Brand Symbols Brand Personality Country of origin Scope Attributes Uses Quality/value Functional benefits Product Brand/customer relationships User Imagery Self-expressive benefits Emotional benefits
32
What is Brand Equity? What distinguishes a brand from its unbranded commodity counterpart and gives it equity is the sum total of consumers’ perceptions and feelings about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand. Source: Alvin A. Achenbaum, “The Mismanagement of Brand Equity, 1993
33
Brand Equity as a Percent of Firm Tangible Assets
Industry Brand Equity Apparel 61 Tobacco 46 Food Products 37 Chemicals Electric machinery 22 Transportation 20 Primary metals 01
34
Picking Stocks Sales Assets Profits General Motors $166B $229B $7B
Suppose that you will be given 0.1 percent of the stock on one of the following companies. Which firm’s stock would you prefer, given the following information? Sales Assets Profits General Motors $166B $229B $7B Coca-Cola $19B $17B $4B Coke name worth $39BB, Kodak $11BB (Brand Valuation Reading)
35
Building Brand Equity Getting awareness of the brand and the meaning.
Making brand associations Building perceived quality Loyalty in repurchase -- locking them in Getting reseller support
36
What is Brand Equity? Brand Equity Provides Value to Customer
Perceived Brand Quality Brand Associations • Personality • Benefits • Attitudes Brand Awareness Brand Name Symbols Other Proprietary Brand Assets Patents Trademarks Channel relationships Brand Equity Brand Loyalty Measurement: For awareness: Recall Recognition Do examples in class Personality Provides Value to Customer by Enhancing: • Interpretation/processing of information • Confidence in the Purchase Decision • Use Satisfaction Provides Value to Firm by Enhancing: • Efficiency and Effectiveness of Marketing Programs • Brand Loyalty • Prices/margins Brand extensions • Trade Leverage • Competitive Advantage Source: Aaker (1991) “Managing Brand Equity”
37
Brand Loyalty Ultimate test Realistic test
38
Brand Awareness Brand Awareness Measurement Do the Tybout experiment
39
Brand Associations Brand Associations Brand Personality
Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations Brand Personality Do the Tybout experiment
40
Dimensions of Brand Personality
41
Brand personality Describe the personality of the following:
Arizona Iced Tea Intel Blockbuster Video Wal-Mart Toyota Dr. Pepper Aquafina Seiko Texas Instruments Nordstroms
42
Brand personality What personality characteristics come to mind for the following: Brand is repositioned several times or changes its slogan repeatedly Brand uses continuing character in its advertising Brand charges a high price and uses exclusive distribution Brand frequently available on deal Brand offers many line extensions Brand sponsors show on PBS or uses recycled materials Brand features easy-to-use packaging or speaks at consumer’s level in advertising Brand offers seasonal clearance sale Brand offers five-year warranty or free customer hot line
43
The Personality-like Associations of Selected Colors
Commands respect, authority America’s favored color IBM holds the title to blue Associated with club soda Men seek products packaged in blue Houses painted blue are avoided Low-calorie, skim milk Coffee in a blue can be perceived as “mild” Caution, novelty, temporary, warmth Eyes register it faster Coffee in yellow can be perceived as “weak” Stops traffic Sells a house Secure, natural, relaxed or easy going, living things Good work environment Associated with vegetables and chewing gum Canada Dry ginger ale sales increased when it changed sugar-free package from red to green and white BLUE YELLOW GREEN
44
Human, exciting, hot, passionate, strong
Makes food “smell” better Coffee in a red can be perceived as “rich” Women have a preference for bluish red Men have a preference for yellowish red Coca-Cola “owns” red Powerful, affordable, informal Draws attention quickly Informal and relaxed, masculine, nature Coffee in a dark-brown can was “too strong” Men seek products packaged in brown Goodness, purity, chastity, cleanliness, delicacy, refinement, formality Suggests reduced calories Pure and wholesome food Clean, bath products, feminine Sophistication, power, authority, mystery Powerful clothing High-tech electronics Regal, wealthy, stately Suggests premium price RED ORANGE BROWN WHITE BLACK SILVER, GOLD
45
Three Keys to Brand Equity
Brand knowledge Network of nodes and connecting links Brand Awareness Depth– Recall, Recognition Breath—Purchase & consumption Brand image Brand associations held in memory Consumer response to marketing Differential Effects Preferences—choice of brand Actions to sales promotions Evaluations to brand extensions
46
Why Extend a Brand? Immediate brand awareness
Transfer existing associations Faster trial Reinforce core brand
47
Why Not Extend a Brand? “Boomerang” potential Dilution Bad “fit”
48
Questions and Guidelines in Brand Name Selection
49
Some Brand Names That Didn’t Work
Crapsy Fruit French cereal Fduhy Sesane China Airlines snack food Mukk Italian yogurt Pschitt French lemonade Atum Bom Portuguese tuna Happy End German toilet paper Pocari Sweat Japanese sport drink Zit German lemonade Creap Japanese coffee creamer I'm Dripper Japanese instant coffee Polio Czech laundry detergent Sit & Smile Thai toilet paper Barf Iranian laundry detergent
50
How Brand Equity Provides Value
High Brand Loyalty Other Brand Assets More/Better Associations Perceived Quality Awareness Reduced marketing costs Increased trade leverage Patents or trademarks Strong channel relationships Creates positive image Helps customer process information Supports quality positioning higher-price strategy Easier to make brand associations liking and familiarity Provides value to customer: Assists in customer information processing Increases confidence in purchase Increases satisfaction in product use Provides value to firm: Increases effectiveness of marketing programs Increases customer loyalty and trade leverage Facilitates brand extensions Is a source of competitive advantage
Similar presentations
